Due to lower impairment charge in Q1 NMB Bank reports massive growth in profitability; Annualized EPS at Rs. 20.29

Fri, Nov 13, 2020 11:23 AM on Latest, Company Analysis,

NMB Bank Limited (NMB) has published its first-quarter report for the FY 2077/2078 with a slight increase in Net Profit by a massive 167.24%. The bank’s net profit increased to Rs. 73.29 crores in this quarter from Rs. 27.18 crores of the corresponding quarter of FY 2076/2077.

As per the quarterly report, the company’s operating profit increased by 159.85% to Rs. 1.05 Arba in first-quarter compared to the corresponding quarter of the previous year. The bank reported Rs. 51.91 crores as distributable profit after P/L appropriation and regulatory requirements in this quarter.

The bank reported a deposit of Rs. 1.40 Kharba in this quarter. On the other hand, the loans and advances stood at Rs. 1.27 Kharba. The net interest income of the bank increased by 10.91% to Rs. 1.35 Arba compared to the corresponding quarter of the previous year.

The bank’s paid-up capital stood at Rs. 14.44 Arba with Rs. 7.82 Arba as its reserves and surplus.

The annualized EPS for the bank stood at Rs. 20.29. The Net worth per share stands at Rs. 154.15. The stock for the period traded at a P/B multiple of 2.65 times.

Click here for the Q1 report

Financial Highlights:

Particulars

NMB Bank Limited

Q1, 2077/2078

Q1, 2076/2077

Difference

Paid-Up Capital

14,447,753.00

13,950,987.00

-

Share Premium

120,167.00

120,167.00

-

Retained Earnings

2,345,224.00

1,737,220.00

35.00%

Reserves

5,357,744.00

5,127,011.00

4.50%

Deposits from Customers

140,168,825.00

131,660,368.00

6.46%

Loans & Advances to Customers

127,571,468.00

115,668,473.00

10.29%

Net Interest Income

1,357,160.00

1,223,654.00

10.91%

Fee and Commission Income

357,627.00

225,604.00

58.52%

Impairment Charge/ (Reversal)

15,317.00

622,816.00

-

Personnel Expenses

496,376.00

357,974.00

38.66%

Operating Profit

1,054,010.00

405,616.00

159.85%

Profit/ (Loss) for the period

732,970.00

271,845.00

169.63%

Total Comprehensive Income

748,139.00

279,947.00

167.24%

Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustments

519,105.00

-

-

Capital Adequacy Ratio (CAR) (%)

12.26%

15.81%

-

Non-Performing Loan (NPL)

2.26%

1.97%

-

CCD (as per NRB Directive)

79.77%

77.27%

-

Cost of Fund (%)

5.88%

7.11%

-

Base Rate (%)

7.85%

10.33%

-

Annualized EPS (Rs.)

20.29

7.79

160.36%

Net Worth per share (Rs.)

154.15

150.06

2.72%

Qtr End PE Ratio (Rs.)

20.11

-

-

Qtr End Market Price

408

-

-

Price to Book (PB Ratio)

2.65

-

-